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December 3, 2016
Mt. Index Riversites Community Club, Inc.
Board of Directors Meeting

Board members present: Mark Bollman, Carrie Byrne, Rebecca Davis, Kathleen EckartLove, Gary Johnson, Mark Haenlein, Patty Harbaugh, Don Larsen, Earl Van Buskirk, Mat Williams
 
Absent: Brent Corey, CJ Holmes, David MacFarlane, Andrew Tuttle
 
Owners and guests:
Ellie Anderson, Tom Boullioun, Terry Anderson, Majid Soltani, John Sharf, Dan Harrison, Gale Williams
 
Committee Reports and Information
 
Executive Committee
Executive Committee members met to discuss options for streamlining deposits, credit card payments, etc. Earl Van Buskirk and Mark Bollman continue working closely with Anderson Hunter on collection cases. We assisted Mat Williams with response to USFS which you all approved via email, and we also bring you a motion for approval to accept gift of a lot on Wits End Place.
 
Budget & Finance
Earl Van Buskirk reviewed the monthly financial statements. Following are the highlights:
  • In A-Section, we need to collect 80% of what we budgeted; we’ve already collected 83%
  • E-Section is up to 79% collection rate; we’ve budgeted for 80%. Now we need to manage expenses
  • The corporation is $83,207 in net income for the fiscal year, after expenses
  • E-Section still has a little over $5k to collect for the special assessment to cover legal fees for the Sims case; A-Section has $1,100 remaining to collect for the same
  • Shiotani collection cost the corporation $301 to clean up the title from the last attorney (Adams & Duncan) that didn’t complete the work
  • PUD paid up on their bridge dues; they’ll have another check soon. Their $250k commitment to pay their part of the bridge will be paid in full by March 2017. This money is unaffected by the hydro project.
  • Total bank balance $88,178.
  • As of November 30, E-Section owes $76,457 to Acrow; $60,394 to owner loans for the bridge
  • There are more checks received that haven’t posted yet
 
Collections Committee
Anderson Hunter Law Firm provided an updated summary of the accounts they’re currently working on. The Collections Committee has no new motions to consider at this time.
 
Following are highlights reviewed in the meeting:
  • Edwards/Jones – Pursuing a default judgment. It was entered yesterday. They owe MIRCC $5,879 and attorney fees are $3,454. If we prevail, MIRCC will get all money owed plus attorney fees.
  • Hendrickson – No change since 8/12/16. Hendrickson filed bankruptcy. They owe us $3,998, we have $1,131 invested. MIRCC cannot take any action.
  • Kelly – owes us $4,120; the case has cost the corporation $11,352 because Kelly is challenging that the corporation owns the roads.
    The motion for summary judgment is to be filed and heard after the Manley/Tyler summary judgment hearing.
  • Lahey & Russek – owes MIRCC $2,842; we’ve spent $2,712. MIRCC is pursuing a default judgment; to be entered on Monday.
  • Manley/Tyler – The motion for summary judgment is scheduled for 12/21/16. MIRCC is trying to get legal fees back from the owner. In our decree, the prevailing party is awarded the attorney fees. Manley was willing to write a check for road dues, but not the attorney fees. They owe MIRCC $2,433 and we have $4,909 invested.
  • Neill – Owes us $1,920; we’ve spent $628. We are holding off on going to small claims court; we have discussed the matter with the owner.
  • Olson – Owes us $6,939; we’ve spent $10,653 so far. It will cost a few thousand to get everything cleaned up with regard to the transaction. Yesterday, MIRCC went to the Sheriff’s Sale and was awarded the property; we paid the property taxes and penalties totaling ~$1500 so the property will not be for sale at the tax foreclosure auction.After a 12-month redemption period, MIRCC gets clear title for it and it will never go back to the prior owner. If Olson pays all fees paid within the year, they could get the property back. This is the first big win where MIR has pursued foreclosure to its end and we’ve won. This sets a precedent – we’ve succeeded on foreclosing on a property after placing a lien.
    Gary Johnson said it’s a huge turnaround story to see MIRCC prevail in the foreclosure.
    Future foreclosures will benefit from what we have learned from this deal. It is estimated that future cases may cost the corporation $3500-$4500 in legal fees. This case was more expensive because it required rework by our new attorney.
  • O’Toole – MIRCC is going to get this lot. They owe us $3,901 and we’ve spent $4,142. They’re giving us a deed in lieu of foreclosure, and it’s squeaky clean. It’s on the county records for $13,000 and is a riverfront lot.The O’Tooles and Melnicks have executed the Deed in Lieu of Foreclosure. We also need the Real Estate Excise Tax Affidavit from them. Once those are all entered, Stewart Title will cost $294 plus tax to obtain a title policy over the property. The other option is to choose just to keep the current litigation guarantee and not get a new title policy. The litigation guarantee will not protect you from any future title issues, but it will give you a good idea as to what interests are in the property.
  • Padilla –He paid dues but not attorney fees, which are $1,239. Fees will be tacked onto the next bill.
  • Parks – No change. We have a judgment against him, but no cash.  
  • Peterson – Wage garnishment still needs to come into MIRCC. We received a first answer from Peterson’s employer indicating that we will receive $3,692.96.We have spent $3,321 pursuing this case. He’s attempting to sell a house we have a lien on.
  • Satterlee – MIRCC has $1,841 into this case, but it’s a bank foreclosure. Sometimes the bank will settle up with MIRCC after a foreclosure transaction.
Hopefully we’ll see a lot of closure on cases in December. We are making headway. The Collections Committee has no motions for additional foreclosure activity at this time.
 


MIRCC is going to end up with about 4 new lots. In the past, Julia Akin helped the corporation liquidate lots. We will need to find someone to help market and sell these lots.


 
Legal/Ethics/Bylaws
Gary Johnson was asked to review past legal decisions and the bylaws to see if there’s any way that people on Payton Creek Road could be compelled to help pay for roadwork due to the slide there. Johnson reported that it appears clear that only people who use that section of the road are responsible to pay for it. Side roads are collected on a flat fee. Only those with an implied easement on that section of the road are responsible to pay for it.
 
Bill Stehl’s case for damaging our gate has been moved to December 14. It’s the second time that it’s moved. We need to stay in touch to see if it’s actually going to happen that morning.
 
E-Section Roads
Dave MacFarlane shared information that Mark Bollman reported in MacFarlane’s absence. We had Jon Vos’ cousin come and dump material in E-Section; several people filled potholes; we got Paul Hery to dig out ditches. MacFarlane now has tons and tons of gravel. We don’t have the bill from the gravel pit on this month’s report; it will be on next month’s bills.  
 
Canyon Falls to US-2
Earl Van Buskirk said we had a temporary easement with Zahlers through December 1, and PUD submitted $25k for an option to purchase the land from Zahler on November 30.

During the term of PUD’s option, the owner grants to the district, its agents, invitees, contractors, plus MIRCC and its officers, officials, invitees, and contractors the rights to ingress and egress on the access road. Essentially, they’re buying an easement that includes us.
 
PUD bought the piece from the highway that winds down to the fish hauler; then they bought to the green gate; now they have an option to buy from the green gate to the new bridge. Zahler’s agreement expired after 30 months; PUD has extended our easement so we continue to enjoy uninterrupted access to the access road.
 
This is a 3-year option to buy if they get the FERC permit. If they buy it, then PUD will own the road with the surrounding land, which means we will have access to it in perpetuity.
 
Van Buskirk noted that the PUD does what they say they’re going to do. He said this is another example of their following through. We can rest easy for the next 3 years without interruption.
 
Don Larsen asked: Do we still have to have a gate? Van Buskirk replied: Yes. Zahler still owns it during the option period and maintains that we need to have it.
 
Mark Haenlein asked: Is the new option agreement going to affect how MIRCC manages access through the gate? Van Buskirk replied: No. Haenlein continued: Will we have to give access to the general public? Van Buskirk: No. The option period still adheres to the access guidelines under the Zahler easement.
 
Van Buskirk also reported that power lines have been cut through across the river at the green gate to avoid the Sunset Falls slide affecting upstream power. E-Section’s electricity used to come through the mudslide area and now it is a no-man’s land with snipped wires; A-Section power still comes through the same way. With the cut through, E-Section’s power now comes across the river a different way and hopefully it means that there will likely be less power outages.
 
A-Section Roads & USFS 6020
Mat Williams said that the weather this time of year means potholes don’t remain fixed. Filling potholes in the rain isn’t very effective. They get blown out quickly.
 
Williams said that Brent Corey was supposed to be at the meeting, but someone just broke into his place. It’s the sixth place in A-Section that’s been broken into recently. Williams remarked that this is what happens when you have a gate that isn’t a gate.
 
Brent Corey was going to talk about material that’s been pushed into the ditches at the front of Mt Index Drive. If we get bad weather, we’re going to get erosion on the road. We’re looking into the situation.
 
Mark Haenlein asked: Where are you with the USFS? Mat Williams replied: We haven’t heard back since we sent our reply.
 
Pertaining to E-Section Roads
Tom Boullioun commented that there is a culvert filled with rocks near his place. It’s off Sky Loop about 250 ft on the right – it’s completely blocked and it looks like several lakes. Boullioun said he doesn’t know how Paul Hery gets his work orders, but when the ground freezes, it will be more difficult to remove the rocks. They are two man rocks/boulders that require equipment. Boullioun believes the rocks are the result of actions by people who don’t belong to the community.
 
 
Priority Business
November Meeting Minutes
Carrie Byrne: “Move to approve the November meeting minutes.”
Approved: Yes – 8; Abstained – 1 (Abstained – EckartLove was absent)
 
November Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for November expenditures.”
Approved: Unanimous
 
Invoices detail
Charges and Invoices to be paid: 
  • E-Section Checks:
    • -$30 – Shirley Heintz (returned clicker deposit)
    • $852.50 – John Vos (road work)
    • $4,278.19 – Universal Equipment (road work since April)
    • $264 – SLK Accounting (monthly bookkeeping)
    • $2,540 – Anderson Hunter Law Firm (General Matters, Peterson, Manley & Tyler, Olson, Edwards & Jones, O’Toole, Shiotani)
    • $210 – Eastham Foster CPA (CPA services)
    • $3,505.62 – Owners’ loans
    • $4,736.17 - Acrow (bridge payment)
  • A-Section Checks:
    • $803.64 – Universal Equipment (road work)
    • $156 - SLK Accounting (monthly bookkeeping)
    • $6,574 – Anderson Hunter Law Firm (Kelly)
    • $128.50 – Carney Badley Spellman, P.S. (attorney fees)
    • $140 – Eastham Foster CPA (CPA services)
 
Ombudsman Meeting
Mat Williams: “Move to approve 11/18/16 letter from Mark Bollman to USFS regarding guard shack and yellow gate.”
Approved: Unanimous - All Board Members approved the November 18, 2016 letter to the USFS by email.
 
Gary Johnson asked if there was any information regarding MIRCC being disinvited to the meeting. Jill McKinny told Mat Williams that she made a mistake regarding the meeting invitees. 
 
Mat Williams has sent a request for information by invoking the Freedom of Information Act to the USFS for any gate complaints on our roadway. Mark Haenlein found historic correspondence between MIRCC and the USFS from 1996-97 that confirmed our right to put in the guard shack; now they say that we don’t.
 
We have also asked the Sheriff to provide records of all criminal activity for all properties in A-Section.
 
Van Buskirk said we should give the USFS a little more time to respond to our letter before the posted gate code in A-Section is removed. Our last statement was that we are willing to come to a table to discuss the matter. We shouldn’t take the code off until the USFS is given 30 days to respond.
 
Gary Johnson said they’ve had no need to access their land and have had locked gates. More recently they’ve unlocked their gate to do trail maintenance. The general public has no access.
 
Johnson also remarked that Mike Kelly has to go through the Forest Service gate to access his property.
 
The Request for Information went out at the same time the letter went out. The USFS may have 60 days to comply.
 
Mat Williams said one things is for sure: We own the road; they have an easement. Barbara Busse (USFS Official) wrote in her 1997 letter to MIRCC that the USFS does not have the right to extend the easement to others.
 
Dan Harrison reported that Randy Blankenburger, former butcher at Gold Bar Family Grocer, was caught stealing from Dan’s property. An officer showed up from Gold Bar. The officer told Harrison, “There’s nothing I can do. It’s not worth prosecuting.” Harrison called PUD and BPA because Randy Blankenburger is living under the power lines; BPA says you cannot live under power lines – it’s not safe.
 
Harrison went on to say that he believes Blankenburger is doing a lot of theft in the area with another man named Tony, who is allegedly staying in Zan Oliphant’s place.
 
Gale Williams caught the same person stealing materials off someone else’s property that’s intended for building projects.
 
These same individuals may be responsible for a trailer on the road. Is the trailer on our right of way? MIRCC can tow it if we put up the money, however the tow company doesn’t have a place to take trailers.
 
New Business
 
Parcel No 00526100543302
Mark Bollman: “Move to accept gift of Parcel No. 00526100543302 from Julian Moorcroft, file the Statutory Warranty Deed, and pay excise tax and filing fee.”
Approved: Unanimous
 
The lot is on Wits End Road and doesn’t owe any road dues. Moorcroft wants to get rid of the lot. If we accept the gift of this lot, we need to pay recording and excise fees. Excise is about 1% of the value of the property ~$400, plus $73 recording fee.
Gary Johnson shared this from the Bylaws, section 10.5: The Board of Directors may accept on behalf of MIRCC any contribution, gift, bequest or devise, or conveyance of land. The Board may not accept any conveyance of real property in payment of or in lieu of assessments, or purchase any real property, except by specific Board resolution pertaining to that property.
 
Green Gate
Mark Haenlein: “Move to turn off exit magnet at Green Gate and require use of clicker, card or valid code to open gate.”
Approved: Unanimous
 
Mark Haenlein stated that the goal was to disable magnetic strip upon exit to prevent people using metal to open the gate. He posted signs 12 days ago that it will happen Dec 01. Paul Hery shut down the loop that morning. You need to use a gate clicker, card, or code to exit.
 
We had general consensus that we’re doing this, but the Board never voted on a motion. What’s the point if you’re leaving the key in the front door – it’s not doing what Mr Zahler wants us to do, which is the problem.
 
Two separate hostile incidents involving the same person trying to enter the gate were cited. The individual also did some vandalism to personal property.
 
Have we issued a keycard to the angry person? The person rents property from Chris Brassfield, lives on Sky Loop, and drives Brassfield’s vehicle. Brassfield is an owner and can get a keycard. The individual in question mowed down a rhododendron.
 
Tonight, the deputies will arrest the two individuals who vandalized and made threats against community members.
 
Kathleen EckartLove expressed general safety concerns for people at the gate. The incident reported was threatening behavior, verbal assault. The person was looking to incite a violent incident, wanted to physically fight. EckartLove is interested in looking into phone service at the green gate. Only Verizon has a signal.
 
Mark Bollman stated that owners and their guests should not feel as if you need to police unwelcomed visitors at the gate. Proceed through the gate and contact law enforcement if you feel threatened or observe illegal activity.  
 
Van Buskirk said that gate clickers are now available for a $50 deposit. Gary Johnson is concerned about the new price being prohibitively expensive (they used to be $30). The actual cost of clickers has increased; they now cost $31. Johnson is in favor of cost recovery – meaning, that MIR should charge the same amount to owners that it pays for the clickers.
 
In A-Section, every property gets one free clicker. New owners need to get something for free. Paid clickers will subsidize the cost of the free ones.
 
Van Buskirk reminded everyone that the payment for clickers is a deposit.
 
Discussion ensued regarding the cost to charge owners for green gate clickers. Although no motion was presented, it appears there may be consensus among the Board to charge $35 per clicker. Transferring gate access devices to new owners will have to be considered.
 
We are moving away from keycards because clickers are more secure than the RFID cards. No new keycards will be available and there are almost none left; they have been distributed to owners in the community.
 
Don Larsen asked: What is the future of the keycards? Do we turn off the card reader? Mark Bollman responded: No, there are a lot of cards out there that are working. We can reduce or eliminate them over time, but not turn them off.
 
Gary Johnson asked: Will a code still be available? Bollman responded: I don’t concede that a code is a right. It’s a privilege. A code can get turned off if it gets compromised.
 
Johnson believes that a clicker-only policy is going to be challenging. A‑Section hasn’t had difficulty with using clickers only; however they also have a gate code posted to the gate itself, due to the current state of affairs with the USFS.
 
Tom Boullioun mentioned that the motion lights need to be replaced at the green gate so people don’t turn off lights and engage in more vandalism.
 
Bekka Davis asked: Will A-Section keep our clickers at $50?
 
Closing Remarks
Next meeting scheduled for Saturday, January 7th at 9:00 a.m. at the Index Fire Station.
 
Respectfully submitted by
 
Carrie Byrne
MIRCC Secretary

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